News : Economy

INU - Donald Trump has upped the pressure on Iran by warning the EU that if they ignore US sanctions and continue to do business with the Iranian Regime, then they will be cut off from the US markets.

He explained that he would fully enforce the sanctions, which are being reimposed following the US withdrawal from the Iran nuclear deal, in an early morning tweet on Wednesday.

Trump wrote: “The Iran sanctions have officially been cast. These are the most biting sanctions ever imposed, and in November they ratchet up to yet another level. Anyone doing business with Iran will NOT be doing business with the United States. I am asking for WORLD PEACE, nothing less!”

This tweet appeared to be a response to a joint statement released by all 28 EU member states, including the UK, France, and Germany, who remain parties to the nuclear deal, in which the EU expressed "deep regret" at US sanctions.

The statement explained that the lifting of nuclear-related sanctions was “essential” to the deal, otherwise known as the Joint Comprehensive Plan of Action, which is why the EU would block US sanctions.

It read: “[The deal] aims at having a positive impact not only on trade and economic relations with Iran, but most importantly on the lives of the Iranian people. We are determined to protect European economic operators engaged in legitimate business with Iran, in accordance with EU law and with UN security council resolution 2231. This is why the European Union’s updated blocking statute enters into force on 7 August to protect EU companies doing legitimate business with Iran from the impact of US extra-territorial sanctions.”

The EU has told its firms not to comply with US sanctions and stop doing business with Iran, unless they are granted authorisation by the European Commission. If they fail to get this permission, European companies could be at risk of being sued by EU member states.

The EU has also put in place a mechanism to allow EU firms affected by US sanctions to sue the US administration within the courts of EU member states.

One senior Trump administration official said that the sanctions on Iran were “completely consistent” with the pressure that the US has put on other rogue regimes.

The EU should not be fighting with the US on this issue, when it is well-known that Iran uses the money earned from business deals with the EU to finance terrorism abroad. This should be especially concerning, considering that Iran plotted a terror attack in France in June, using one of its ambassadors in Vienna to plot the bombing, which was thankfully thwarted.

If the EU really wants to stand with the Iranian people, they should increase sanctions against the Regime and support their legitimate protests against the mullahs.